Aarti Pharma Labs , a prominent player in the pharmaceutical industry, has reported a robust 11% year-on-year revenue growth for the second quarter of fiscal year 2026 (Q2FY26). The company's standalone revenue reached INR 417.00 crores, up from INR 377.00 crores in the same period last year. However, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a decline to INR 75.00 crores from INR 85.00 crores year-on-year.

Financial Performance Highlights

The company's profit after tax (PAT) for Q2FY26 stood at INR 31.00 crores, compared to INR 48.00 crores in the corresponding quarter of the previous year. This decline in profitability was partly attributed to forex losses of INR 7.40 crores during the quarter.

Segment-wise Performance

Aarti Pharma Labs operates across three key verticals:

1. Xanthine Derivatives: Contributed 51% to the turnover in Q2FY26.

   • 71% of volume from beverage customers
   • 29% from other segments
   • Geographical split: 59% exports, 41% domestic sales

2. API and Intermediates: Accounted for 39% of the turnover.

   • 55% from regulated markets
   • 31% from rest of the world
   • 14% from non-regulated markets

3. CDMO-CMO Services: Contributed 10% to the revenue for the quarter.

   • Currently working with 21 customers
   • 59 active projects, including 39 in commercial stage

Operational Updates

• The company inaugurated its Atali plant in September, which is expected to be fully operational in 2-3 quarters.
• Xanthine expansion is progressing as planned, with current operations at around 500 metric tons per month.
• The company expects to reach 9,000 metric tons per annum installed capacity for Xanthine by the end of this financial year.

Revised Guidance and Future Outlook

Aarti Pharma Labs has revised its EBITDA growth guidance for FY26 to 8-12% year-on-year. The company remains confident in its long-term business strategy, focusing on growth while maintaining financial discipline.

The CDMO-CMO business is expected to exceed the earlier projected 30-40% growth, driven by 39 commercial projects across 21 customers. This segment is poised for significant expansion, with the company exploring opportunities in mid-size peptides and liquid peptide work.

Management Commentary

Rashesh Gogri, Chairman of Aarti Pharma Labs, commented on the results: "We are confident that our long-term customer relationships and strong technical capabilities will continue serving as pillars of our progress. The CDMO-CMO segment is showing promising growth, and we are taking steps to increase our reach within the industry."

The management also highlighted ongoing efforts to optimize operations, including debottlenecking initiatives in the Xanthine segment and strategic expansions in the anti-cancer API segment.

As Aarti Pharma Labs navigates through short-term challenges in its API business, the company remains focused on its long-term growth strategy, leveraging its diversified product portfolio and expanding capacities to capture emerging opportunities in the pharmaceutical market.

Aarti Pharma Labs , a prominent player in the pharmaceutical sector, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025, showcasing robust growth and improved profitability.

Q2 Financial Highlights

The company reported a significant increase in its standalone revenue from operations, which rose to Rs 417.29 crore in Q2, marking an 11.2% growth compared to Rs 375.31 crore in the previous quarter. This upward trend in revenue indicates strong market demand for Aarti Pharmalabs' products and services.

Profitability also saw a substantial improvement, with net profit for the quarter reaching Rs 30.85 crore, a 45.3% increase from Rs 21.23 crore in the prior quarter. This growth in profitability suggests effective cost management and operational efficiency.

Half-Year Performance

For the half-year period ended September 30, 2025, Aarti Pharmalabs demonstrated consistent performance:

The company's revenue for the first half of FY2026 reached Rs 792.60 crore, showing a 2.8% increase year-over-year. Net profit for the same period stood at Rs 52.08 crore, up by 8.9% compared to the previous year, indicating improved profitability despite challenging market conditions.

Operational Highlights

Aarti Pharmalabs operates exclusively in the pharmaceuticals segment, focusing on delivering high-quality products and services. The company's strategic initiatives and market positioning have contributed to its strong financial performance.

The company's global presence is reinforced through its subsidiaries, including Aarti USA Inc and Aarti Pharmachem Ltd. Additionally, Aarti Pharmalabs has entered into a joint venture with Ganesh Polychem Limited, effective from April 1, 2025, which may contribute to future growth opportunities.

Management Commentary

The Board of Directors approved these results in their meeting held on November 9, 2025. While specific management comments were not provided in the available data, the financial results reflect the company's strong operational performance and strategic initiatives.

Conclusion

Aarti Pharmalabs' Q2 FY2026 results demonstrate the company's resilience and growth potential in the pharmaceutical sector. With a significant increase in both revenue and profitability, the company appears well-positioned to capitalize on market opportunities and drive sustainable growth in the coming quarters.

Investors and stakeholders may find these results encouraging, as they reflect the company's ability to navigate market challenges while maintaining a strong financial position. As Aarti Pharmalabs continues to focus on its core pharmaceutical business and explore new ventures, it may be poised for further growth and expansion in the global pharmaceutical market.